This Week in Startups

The $97 Billion VC Panel | E1987

26 snips
Jul 31, 2024
Dana Johns, Head of Private Equity in New Jersey, and Tom Loverro, Partner at IVP, delve into the thrilling world of venture capital. They discuss the resurgence of secondary pricing, hinting at an optimistic market revival. The duo also explores the impact of cybersecurity investments and how evolving dynamics affect startup independence. With insights on investor strategies and the balance of product development versus sales, they shed light on navigating the complexities of capital allocation while keeping an eye on emerging sectors.
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INSIGHT

Secondary Market Recovery

  • The secondary market's median price discount for companies has decreased, signaling a potential VC recovery.
  • Increased activity from firms like Industry Ventures and Blackstone also points to a healthier market.
INSIGHT

VC Time Allocation

  • VCs have limited time and bandwidth, splitting it between existing portfolios, new ventures, and secondary markets.
  • The secondary market offers value with known entities and established teams, requiring a clearing price.
ANECDOTE

Wiz Rejects Google

  • Wiz, a cybersecurity firm, recently rejected a $23 billion acquisition offer from Google.
  • This suggests Wiz has high confidence in their future growth potential, preferring an IPO.
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